Leader’s feelings of violation and high LMX relationships: A multilevel approach to examine a contextual boundary condition in LMX

Leader–member exchange (LMX), a well-researched leadership theory that focuses on the dyadic relationships between leaders and subordinates, is associated with positive subordinates’ outcomes. However, the contexts outside the LMX dyadic relationship might influence those favorable outcomes. In this study, we investigate the cross-level moderating effect of leader’s feelings of violation, as a contextual boundary, on LMX outcomes. Based on social exchange theory, crossover model, and the psychological contract literature, we discuss how the relationship between a subordinate’s perceived LMX and favorable subordinate attitudes and behaviors, such as performance, task-focused citizenship behaviors, and organizational commitment, is reduced when the leader experiences feelings of violation toward the organization. Using a three-wave time-lagged multilevel design with a sample of 226 subordinates and 39 leaders, we find that leader’s feelings of violation mitigate the positive association of perceived LMX on citizenship behavior and commitment but have no effect on performance. Research and practical implications are discussed.